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Activision faces labor suit

Former employee files suit against publisher alleging violation of overtime laws, wrongful termination.
By Brendan Sinclair, GameSpot
Posted Jul 20, 2006 5:13 pm PT

Two years ago, the "EA Spouse" scandal hit Electronic Arts, leading to a class-action lawsuit that the largest American game publisher settled out of court in October of 2005. Now the second-largest American publisher faces a similar fight, as a former Activision employee this month filed suit against the company for violations of state and federal labor laws.

In the suit, a former Activision employee accuses the publisher of consistently violating labor laws for the last three years by not properly paying employees for the hours they worked. The employee contends that Activision violated the Fair Labor Standards Act by knowingly misclassifying some of its employees as exempt from overtime pay and minimum wage laws.

That violation she says is compounded by the publisher's failure to provide its employees with an accurate record of their hours worked, adding that the company was engaging in unfair competition by underpaying members of its workforce. She is also suing the company for wrongfully terminating her when she brought these complaints to her superiors. The employee is asking for unpaid wages with interest for current and former employees, the legal costs associated with filing the suit, and punitive damages.

"As a direct result of the unlawful and wrongful termination by defendant employers, [the plaintiff] has suffered substantial losses in earnings and job benefits, and has suffered humiliation and extreme and severe mental anguish and emotional distress normally associated with wrongful termination," the suit reads.

The former employee did not specify the amount of money sought, but depending on how many people join the suit, a victory could cost Activision millions of dollars. The settlement in the suit stemming from the EA Spouse controversy cost Electronic Arts $14.9 million.

This is the second suit against Activision to come to light this week. A shareholder of the publisher is also suing a number of its current and former executives, claiming they backdated stock options. As of press time, Activision representatives had not returned requests for comment on either lawsuit.

38 Comments

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masiisam

Great... more expensive games..

Posted Jul 31, 2006 3:03 pm PT
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DarknessOfFate1

Who really cares? Whatever the settlement will be it wont mean jack for a compnay like activison.

Posted Jul 31, 2006 1:43 pm PT
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grimzeus

We bring you more... because we pay our employees less!

Posted Jul 31, 2006 7:53 am PT
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superbrett2000

This is just one ex-staffer who probably sucked at her job. If it were 5 ex-staffers, that would be very different.
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Unless it was one ex staffer suing on behalf of a number of staff members.

At any rate, should Activision be found guilty, it doesnt matter if its one or 100 employees who got screwed. In such a case, they broke the law and should be punished accordingly.

Posted Jul 30, 2006 1:07 am PT
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willripyouanew1

God Bless America !!

Posted Jul 26, 2006 5:45 pm PT
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Lisandro_v22

I would like to suffer severe mental anguish. where do i sign?

Posted Jul 26, 2006 1:15 pm PT
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axia_777

I hope Activision losses just like EA lost their two cases (America and Canada). Maybe if enough of these fool companies get sued for huge money they will stop abusing workers and pay them the loot they are worth. That of they will move all these video game jobs to India, Korea, China, and other such countries where you get paid crap money, get abusing hours, no OT pay, and don't complain or you would lose your job with no ability to sue the company that screwed you over.

Posted Jul 25, 2006 12:54 pm PT
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rasds

They should run a investagation about this

Posted Jul 24, 2006 8:26 am PT
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dryden555

This is just one ex-staffer who probably sucked at her job. If it were 5 ex-staffers, that would be very different.

Posted Jul 24, 2006 6:59 am PT
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Briantb_2008

Well Activison better have good lawyers.

Posted Jul 23, 2006 12:05 pm PT
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woj

Bottom line is these people that are complaining about not getting overtime went into the job knowing that they were going to be salaried employees, hence no overtime.

Anyone taking a job in this business not expecting to to work long, long hours is in for a very rude awakening.

Posted Jul 23, 2006 10:59 am PT
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Sidrat2004

You think if they signed a contract stating that at certain times during the development cycle that unpaid overtime would be necessary then anyone who signed this type of contract wouldn't have a leg to stand on.

Not having worked in this kind of field I wouldn't know what the standard contract would include.

Paying workers for their time worked sounds fair and reasonable. Expecting people to work a 70+ hour week seems too much to me, but then to get into the industry people start out working for free anyway, you'd have thought companies like EA and Activision would have better employee policies rather than coming across as sweat shops with degree workers.

Posted Jul 23, 2006 10:33 am PT
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evilyoda861

Who really cares. Activision hasn't made a game that I really care for anyways have never made a solid Star Trek game anyways I could care less if they lose millions or not, since I myself dont have that kind of money to take from people.

Posted Jul 22, 2006 7:26 pm PT
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Talgrath

A shareholder and an employee declaring lawsuits against Activision in the same week? Looks like the disgruntled just declared a called shot to the nuts against Activision. While the first lawsuit sounds hard to prove, this one might have a bit more merit; it's well known that the industry has a problem with unpaid overtime. It will be interesting to see what happens..

Posted Jul 22, 2006 6:06 pm PT
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nappan

I'm interested to see if this case has merit. I really don't know enough about this issue as it stands, but if developers are getting the shaft, it's certainly something that needs to be rectified. Given how much money games make now, it would be inexcusable for companies, especially big houses like activision to be shortsheeting their developers. That said, maybe they're not. Isn't it swell that civil suits are a matter of the public record?

Posted Jul 22, 2006 3:41 pm PT
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rokkuman09

That's not right! Just hope you don't get Jack Thompson in there..... video games made Activision not pay them for the amount they worked

Posted Jul 22, 2006 9:57 am PT
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The_Weekend

well, coming from activision ... i expected better treatment ... can't wait to hear other companies ... especially microsoft!

Posted Jul 22, 2006 6:22 am PT
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GMAN32X

evilmonkey998: I'm sure you would be pretty ticked off if you were not paid for the actual amount of work that you put in. It seems that working for Videogame developers/publishers is starting to lose its luster...

Posted Jul 22, 2006 5:18 am PT
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mrblah00

game developers everywhere are jumping up and down for this (the people that actually make the game, not the corporate buisness men who only care about stocks). Once activision gets nailed for millions more than what they should have paid in the first place, other companies will probably shape up to avoid a similair fate. The creative industry is plagued by unpaid overtime.

Posted Jul 21, 2006 9:27 pm PT
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comthitnuong

i guess i would be pissed if i didnt get paid well for overtime

Posted Jul 21, 2006 1:56 pm PT
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i_love_my_ds

she's probably gonna lose

Posted Jul 21, 2006 9:23 am PT
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damagooon

lawsuits are the newest fad.

Posted Jul 21, 2006 9:01 am PT
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wire-dj

I bet their CEO and Presidents never have a wrong paycheck nor do they bounce

Posted Jul 21, 2006 4:55 am PT
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Hellisunreal

These guyz need to treat people like people. All this talk of next gen games being expensive, is cuz ppl need 2 be given their time off from working. But these publishers tell us that & don give these guyz any time off, so they can make a big profit. This is not right

Posted Jul 21, 2006 3:18 am PT
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dn3datomiced

What the hell is wrong with 2K? From all I've heard, they're just fine.

Posted Jul 21, 2006 12:47 am PT
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nintendorocks

This is the second law suit filed against Activision this week! Activision is in some deep trouble.

Posted Jul 21, 2006 12:11 am PT
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messin18

No 2k pays their employees overtime.

Posted Jul 20, 2006 9:19 pm PT
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gamer_10001

Activision: the next 2K.
Hope they win, but they probably won't.

Posted Jul 20, 2006 8:10 pm PT
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fenriz275

This is a practice that's restricted to game companies. Lots of companies try to skirt the law when it comes to labor practices.

Posted Jul 20, 2006 7:49 pm PT
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messin18

If you arn't interested in Industry news don't read this section you tool.

Glad to see Activision getting their asses in court. Overtime laws are very clear and it's ridiculouse that companies just ignore it.

Posted Jul 20, 2006 6:04 pm PT
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gundamwing

idk seems pretty legit to report on the game industry. it lets us know how their employees are treated obiviously.

Posted Jul 20, 2006 6:00 pm PT
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allmont

[This message was deleted at the request of a moderator or administrator]

Posted Jul 20, 2006 5:45 pm PT
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evilmonkey998

I bet a few hundred lawyers are jumping up and down for this

Posted Jul 20, 2006 5:39 pm PT
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Blazer88

Lawsuits,...yay!

Posted Jul 20, 2006 5:36 pm PT
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evilmonkey998

Who cares about this except people that work ther

Posted Jul 20, 2006 5:34 pm PT
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Braighter

Hmm, litigation...how exciting....*yawn*

Posted Jul 20, 2006 5:33 pm PT
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